Amazon Vs Walmart: Clash of Business Model | Harvard Business | MBA Case study Analysis & Solution

Set in 2021, this case describes how Amazon and Walmart have been two of the most successful retailers in history and are responsible for changing the rules of the game in the retail industry in the US. Over the years, the two firms have perfected contrasting business models to enable their dominance in offline and online retailing. Walmart's model of low prices and strategic partnerships with suppliers redefined supply chain practices and lowered system costs through the adoption of information technology. Amazon's online model of convenience of shopping from anywhere, anytime, comprised a high-quality, user-friendly platform with a large product catalog and a widespread and reliable fulfilment infrastructure to deliver the orders quickly to the shopper. In recent years, the growing customer preference for omni-channel retailing, an integrated experience that seamlessly comprises digital and physical retail, has compelled the two companies to make substantive investments in developing capabilities and acquiring resources in what was hitherto the other's domain. This leads to several questions that engage the students. With Walmart and Amazon racing to add online and offline retail, respectively, would their distinctive business models morph to become similar to each other? Or should each focus on its core strength while offering the other service (online for Walmart and offline for Amazon) as complementary?

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